Why Tether's Recent Fall Presents an Opportunity
May 02 2019 - 12:38PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
May 2, 2019 -- ADVFN Crypto NewsWire -- Over the course of the
past year, several projects have launched with the obvious intent
of supplanting Tether as the most important stablecoin on the
crypto market. By the numbers, however, none of them have really
gotten close to doing so, besides Circle’s USD Coin, which is more
than 50% smaller in market cap.
One way of rising above Tether,
however, has not been proposed until quite recently. Why create one
stablecoin that has similar strengths and weaknesses to Tether when
you can create one that combines the strengths and weaknesses of
several mid-sized players? To take things a bit further, why not
eliminate the direct peg to fiat altogether?
One project that appears to be
doing just that is called Neutral Dollar, which is a stablecoin
pegged to stablecoins. Understanding why a group would choose to do
this is simple. The key idea behind distributing the distance
between the coin and its’ fiat peg is to further lower the
volatility that still seems to be plaguing even the most “stable”
stablecoins.
Whether or not this will prove to
be true in practice, remains to be seen. Neutral Dollar is still a
project that is very much in its’ infancy. What might make it even
more interesting to investors who have already dipped their toes in
the stablecoin space is that the project is actually headquartered
in the United States. If this ends up meaning that it is one of the
few that is willing to fully play ball with United States
regulators, then it is reasonable to expect that Neutral Dollar
will gain a lot of institutional interest.
Giving strength to their efforts is
the fact that they are reportedly directly using the New York
Attorney General’s investigation of Bitfinex and Tether to show why
they are a safer alternative. In the end, with all of this in mind,
2019 could prove to be the true year of the stablecoin, especially
with regards to which one ends the year on top of the
market.
By: BGN Editorial Staff
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